Saturday, 24 March 2018
Counting The Opportunity Cost Of Rotting Cash (3)
Read? Counting The Opportunity Cost Of Rotting Cash (2)
How to count?
Assuming Uncle8888 has stayed fully invested for 5% dividend yield since he is only interested in STI blue chips from 2012 to 2028 (10 years from now).
How much realized gains must he made before 2028 over future market cycles to break even with accumulated dividends from 2012 to 2028?
It is about 74% realized investment gains over current War Chest.
He will have to achieve at least 74% to 180% ROC over current war chest by 2028!
Not really that bad on holding larger war chest to time the market.
Current War Chest is 56% more than the initial capital at the inception of investment portfolio when he seriously began his investing journey on Jan 2000 to get out of rat race and achieving financial independence at age of 55 on Sep 2011.
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